Loews Corporation (L)

In addition to February's revision from 175K in job gains to 197K, January is revised higher by 15K jobs to 144K.

Average hourly earnings fell by $0.01 to $24.30. On a Y/Y basis, average hourly earnings are higher by 2.1%. The average workweek increased 0.2 hours to 34.5 hours, offsetting the net decline over the previous three months.

The headline unemployment rate didn't fall as expected, but this came as people flocked back into the workforce to the tune of about 500K workers. The labor force participation rate rises to 63.2% from 63% previously. A year ago it was 63.3%.

The broader U-6 unemployment rate rose to 12.7% from 12.6%. A year ago it stood at 13.9%.

S&P 500 (SPY) futures pop just a bit higher, now +0.3%; the 10-year Treasury yield ticks down a basis point to 2.79%.

Citigroup upgrades shares to Buy from Neutral, urging value investors to note the severity of yesterday’s move relative to where other midstream MLPs trade on a cash flow multiple basis; the firm figures BWP trades at 10.3x 2015 EBITDA and 9.4x 2016 EBITDA, more favorable than other midstream MLPs with similar challenges such as TC Pipelines (TCP) and Niska Gas Storage Partners (NKA).

Given the weaker outlook, Morgan Stanley says BWP/Loews (L) made the wisest choice to substantially reduce the distribution rate while remaining able to fund the capital plan internally, preserving maximum value.

Results were hurt by lower transportation revenues due to contract expirations and contract renewals and lower parking, lending and storage revenues due to decreased parking opportunities from a reduction in the level of and volatility in natural gas price spreads between time periods.

The distribution cut prompts Credit Suisse to downgrade BWP to Underperform from Neutral with a $20 price target, down from $32.

Loews (L), which owns 53% of BWP, is 3.8% lower; the company also released Q4 earnings.

Loews (L+0.8%) is initiated with a Buy and $52 price target at Deutsche, which sees the company as the cheapest of its peer group, with said peer group being those investment firms funding investments with the cheap float of their insurance operations.

Loews' P&C insurance subsidiary Cna Financial (CNA+2.2%) is likewise started at Buy with $42 price target. Analyst Joshua Shanker says years of underperformance has left a stock trading at a deep discount to its industry peers. "Recent pricing actions should likely result in margin expansion leading to a ROE that is approximately equivalent to, if not better than, the company's cost of capital."